Khazanah ready to counter bid at S$3.95: Reuters

SINGAPORE, (July 26, 2010) - Things are hotting up in the takeover battle at Parkway Holding as Malaysian sovereign wealth fund Khazanah is reportedly poised to offer to buy all outstanding shares of Singapore's Parkway Holdings, valuing it at $3.3 billion.

Khazanah's latest offer will be around S$3.95 ($2.88) per share of the Singapore healthcare firm in response to the S$3.80 offered by rival suitor Fortis Healthcare (FOHE.BO) of India, the sources told Reuters. The report came after the listed healthcare group suspended trading of its shares this morning on the local bourse.

If confirmed, the purchase will be the Malaysian state investor's biggest acquisition overseas.
Parkway shares last traded at S$3.88 apiece and the market has been expecting a counterbid after its partial offer was met by another bid by India’s Fortis group.

"It will be a general offer," said one of the sources who has direct knowledge of Khazanah's latest bid. Analysts told Reuters Fortis could walk away and cash in its 25 percent holding in Parkway.